Private Equity Landscape in India May 6, 2008

Contents PE Investment in India Comparison with other emerging markets Funds raised in India Investment by sector Investment by stage

Buyout deals Significant PE Investments PE Exits India-Europe M&A Activity – Inbound and Outbound India–Italy M&A Activity

Page 2

Private Equity in India – Growth over the years $18,000 $16,151

Excluding PIPE deals the total PE investments amounted to $11.7bn for 2007 which is nearly double of $5.9bn for 2006

$16,000 $14,000

US $ Million

$12,000

Average deal size was $43m for YTD 2007 as against $25m for 2006

$10,000 $7,460

$8,000

Excluding PIPE deals the average deal size was $31m for 2007 as against $25m for 2006

$6,000 $4,000 $2,000

$1,800 $1,500

$1,750

$2,300

$774

$0 2001

2002

2003

2004

2005

2006

2007

Currency = USD million Source : IVCA ( upto 2002 ) , Venture Intelligence, AVCJ , TSJ Media & Industry Source: An Indispensable Guide to Equity Investment in India, Evalueserve, September 2007

Page 3

Total deals were 375 in 2007 as against 302 in 2006

PE Investments – Indian Market vs. Other emerging Markets $

2006*

2007

%Change

Australia

$

16507.32

14610.99

89%

China

$

10305.85

10873.67

106%

India

$

7416.46

18278.84

246%

Indonesia

$

713.95

517.09

72%

Japan

$

11505.28

14708.03

128%

Korea

$

1886.13

4458.74

236%

New Zealand

$

2955.52

2733.05

92%

Singapore

$

2076.62

5347.87

258%

Taiwan

$

4000.88

4932.04

123%

Thailand

$

3879.25

376.61

10%

Total (Includes other Asia Pac Countries)

$

61247.25

76836.93

125%

Investment Breakdown Country-wise — 2007 Amt invested (USD Million)

No. of Deals

India

$

18278.84

352

Japan

$

14708.03

366

Australia

$

14610.99

148

China

$

10873.67

438

Malaysia

$

5442.74

26

Singapore

$

5347.87

43

Taiwan

$

4932.04

38

Hong Kong

$

2866.32

45

New Zealand

$

2733.05

54

Vietnam

$

683.50

57

Indonesia

$

517.09

8

Thailand

$

376.61

13

Source : AVCJ, * Restated, Currency = USD millions

The bullish industry story is also reflected in the heightened interest shown by Global Private Equity majors. Source: Asian Venture Capital Journal-Asia e-letters

Page 4

Highlights of PE Investments in India vs. Other Emerging Markets Investment Breakdown Country-wise — 2006 Amt invested

No. of Deals

Investment Breakdown Country-wise — 2007 Amt invested

No.of Deals

Australia

$

16507.32

106

Australia

$

14610.99

148

Japan

$

11505.28

277

India

$

18278.84

352

China

$

10305.85

332

Japan

$

14708.03

366

India

$

7416.46

321

China

$

10873.67

438







From occupying the fourth position in terms of deal volume in 2006, India became second in the period January–August 2007 In the third quarter of 2007, India outpaced Australia, which hitherto had garnered maximum PE investments in terms of deal volume Temasek’s USD 2 billion investment in Bharti Airtel is the top investment in Asia for Q307.

Source: Asian Venture Capital Journal-Asia and India e-letters

Page 5

Investment Breakdown Country-wise in Q407 Amt invested (USD million) India

$

6,389

Australia

$

3,371

China

$

2,701

Taiwan

$

393

PE Investment Trends Funds raised 7000

5,914

6000

4,895

USD million

5000

4000

3000

2,613

2000

776

1000 260 0 2003

2004

2005

2006

2007

Some of the very large funds being raised are infrastructure sector funds Only nine out of the 64 funds known to be raising capital for Indian investment are categorized as buyout-focused Source : AVCJ Research, upto 30 September 2007

Page 6

PE Investments in India – On a Growth Path Funds raised in India as a % of Funds raised in Asia Currency: USD million 11.6%

60000

11.8%

50000 40000

80000 70000 60000 50000 40000 30000 20000 10000 0

11.1%

30000

6.8%

20000 10000

India investments as a % of Asia Investments Currency: USD million

7.8%

0 2003

2004

Funds Raised in Asia

2005

2006

2007

Funds Raised in India

11.7%

5%

2003

8.1%

2004

Asia Investments

20.4%

6.5%

2005

2006

Q1-Q3 2007

India Investments

Funds raised for India as a percentage of funds raised for Asia has been rising, highlighting increasing attractiveness of India as an investment destination PE Investments in India as a percentage of investments in Asia have also been on the rise. India has been on top among the other Emerging markets in terms of PE investments during 2007 Source: An Indispensable Guide to Equity Investment in India, Evalueserve, September 2007; AVCJ

Page 7

Private Equity Funds Pouring in India Funds Launched or Announced in 2007 PE Firm

Fund Size

Target Sector(s)

Citigroup and Blackstone

USD 5 billion

Infrastructure

ICICI Bank

USD 2 billion

Infrastructure

Chrys Capital

USD 1.25 billion

Infrastructure, Technology, Pharmaceuticals, and Financial services

3i Capital

USD 1 billion

Infrastructure

Actis Advisors

USD 1 billion

Generic

IL&FS Investment Managers (IIML)

USD 1 billion

Real Estate

Baring Private Equity Partners

USD 400–500 million

Generic

Fire Capital

USD 500 million

Real Estate

Sequoia Capital India

USD 500 million USD 300 million

Growth Capital Venture Capital

Source: Factiva

Page 8

Private Equity Funds Pouring in India (Cont’d.) Funds Launched or Announced in 2007 PE Firm

Fund Size

Target Sector(s)

Parag Saxena (Leading Venture Capitalist)

USD 1.5 billion

Asia Fund with special focus on India

Sabre Capital

USD 1 billion

Generic

Baer Capital

USD 1 billion (consisting of five funds)

Infrastructure, Special Situations and Generic

Ripplewood Holdings

USD 1 billion

Indian Securities

Peepul Capital (Formerly iLabs Management)

USD 215 million

Manufacturing and Logistics

Dawnay Day

USD 200 million

Generic

NEA-Indo US Ventures

USD 189 million

Generic

Ventureast Funds

USD 150 million

Life Sciences and Information Technology (IT)

Nexus India

USD 100 million

Venture Capital

Source: Factiva

Page 9

PE Funds Launched by Other Institutions Funds Launched or Announced in 2007 Institution

Fund Size

Target Sector(s)

DLF

USD 8 billion (3 funds)

Infrastructure and Real Estate

Yes Bank

USD 1.5 billion (4 funds)

Infrastructure, Real Estate, Special Situations

Macquarie Bank and IFC

USD 1 billion

Infrastructure

Power Finance Corporation

USD 1 billion

Power

HSBC Bank

USD 600 million

Real Estate

Louis Vuitton

USD 500–600 million

Retail

Piramal Enterprises

USD 200 million

Healthcare

Burill & Company

USD 200 million

Life Science

The Small Industries Development Bank of India (SIDBI)

INR 1 billion (USD 22.6 million*)

Small- and medium-sized companies

This fund raising Indicates heightened PE activity in India Source: Factiva; Oanda Website *Wednesday, 28 February 2007 (INR 1 = USD 0.02263)

Page 10

India – An Attractive Investment Destination Looking at the attractive investment opportunities in India, PE players the world over are planning to enter India and increase their allocations to participate in the growth story Fund management group Schroders is in talks with a number of possible partners about setting up a venture in India. Schroders' Indian operation will offer a range of funds targeting domestic investors, offshore funds and discretionary fund-management accounts Cerberus Capital, a New York-based private equity (PE) fund is entering the Indian market shortly Kohlberg Kravis Roberts, another major PE fund, is looking at investments in India Ripplewood Holdings, a US-based private equity firm is planning to enter India through a USD 1 billion big-ticket fund Private equity firm Berggruen Holdings Inc has plans to invest USD 300 million in India over the next two years US-based Bessemer Venture Partners has earmarked USD 350 million for Indian investments, especially in companies that cash in on the rise of consumer spending, infrastructure development and intellectual property-based opportunities Source: Factiva

Page 11

PE Investments in 2006 – Trends in Sectors Percentage Contribution of Sectors to number of deals and Value of deals 1,600

100

V-19.7% D-28.8%

V-18% D-1.3%

Value in USD million

1,400

90 80

1,200 V-13% D-18.2%

1,000

70

V-12.8% D-10.3%

60

800 V-6.9% D-9.6%

600

50

V-8% D-7.6%

400

40

V-2.9% D-4.6%

200 0

Energy

Ret ail

Telecom

Ot hers

599

220

143

210

295

377

125

1,344

258

23

14

13

10

9

8

6

4

13

515 29

1,470

962

Deals

87

55

0 M &E

31

Value

20 10

Text iles

956

BFSI

V-1.7% D-2%

Shipping & Logist ic

Engg. & Const ru ct ion

M anuf ac t uring

V-2.8% D-3.3%

30 V-3.5% D-4.3%

Food & B ev.

Lif e Sciences

IT & ITES

V-1.9% D-4.3%

V-4% D-3%

V-5% D-2.6%

IT&ITES was the most favored sector by investors, reflected by the highest percentage contribution both in terms of number of deals and value Though Telecom contributed to only 1% to the number of deals its share was 18% in terms of value and this was contributed by only four deals, the biggest being the Idea Cellular Pre- IPO deal of USD 966 million Source : Venture Intelligence

Page 12

PE Investments in 2007 – Trends in Sectors Percentage Contribution of Sectors to number of deals and Value of deals

5,000

V-25.83% D-14.93%

4,000

V-20.94% D-2.13% V-9.80% D-7.47%

3,000 2,000

V-7.71% D-23.47%

V-9.94% D-13.87%

V-2.20% D-2.40%

V-2.99% D-8.00%

1,000 0

V-3.62% D-4.27%

V-3.29% D-4.00%

Healthcar Engg. & Textiles & Shipping Media & & Entertain e & Life Construct Garment

V-6.12% D-5.60%

V-6.69% D-12.00% V-0.24% D-1.07%

V-0.64% D-0.80%

IT & ITES

Manufact uring

BFSI

Total Value

1,245

1,605

4,171

482

1,583

356

584

531

989

103

Total deals

88

52

56

30

28

9

16

15

21

3

Energy

Hotels & Telecom Resorts

Retail

Others

3,382

39

1,081

8

4

45

100 90 80 70 60 50 40 30 20 10 0

IT & ITES retained the top position in terms of number of deals. BFSI was the top contributor in terms of value led by two major investments: Carlye and Citigroup’s USD 760 million investment in HDFC; and a joint investment of USD 345 million by General Atlantic, Goldman Sachs, and SAIF Partners in National Stock Exchange The share by deals for Manufacturing was slightly higher in 2006 as compared to 2007. This may be due to the fact that there was no deal in this sector in Q207. However the sector caught up and witnessed 38 deals in H2 of 2007 Telecom sector’s contribution was low in terms of number of deals but its contribution in terms of value increased significantly from USD 1.3 Bn to USD 3.3 Bn – mainly due to 2 deals of Bharti amounting to USD 3 Bn Source: Venture Intelligence

Page 13

PE Investments in 2006 –Trends in Stages

V-48.7% D-35.8%

USD million

4000 3000

V-21.1% D-21.9%

2000 1000 0

V-3.2% D-19.5%

V-15.2% D-4.6%

V-6.8% D-15.2%

V-5% D-3%

Early

Grow th

Late Stage

PIPE

Buyout

Other

Value

241

511

3,639

1,576

1,135

373

Deals

59

46

108

66

14

9

120 100 80 60 40 20 0

Deals

Percentage Contribution of Sectors to number of deals and Value of deals

Late Stage deals remained popular with investors. They made the highest contribution to the number of deals and also value of deals. The share of Buyouts was low in number of deals but their contribution to the value of deals was significant; led especially by KKR’s buyout of Flextronics Software Systems for USD 765 million. There were 59 Early stage deals in 2006 thus contributing significantly to the number of deals, but their contribution to value of deals was a mere 3%. Source: Venture Intelligence

Page 14

PE Investments in 2007 – Trends in Stages Percentage Contribution of Sectors to number of deals and Value of deals 7,000 6,000

V-32.35% D-36.80%

V-39.98% D-21.87%

160 140 120

5,000

100

4,000

2,000

V-2.61% D-20.27%

1,000 0 Value Deal

80

V-9.87% D-12.00%

3,000

V-4.31% D-2.67%

V-2.30% D-3.47%

V-8.58% D-2.93%

PIPE

Growth

Early

Buyout

Pre-IPO

Other/Unknown

5,224

6,458

1,595

421

696

372

1,386

138

82

45

76

10

13

11

Late Stage deals continued to attract investments throughout 2007 and were the highest contributor to the number of deals. PIPE deals contributed highest to the total value of deals led by major investment of $2 bn by Temasek in Bharti Airtel The share of buyouts decreased from 2006—more substantially in terms of value as there were not many big ticket deals in this space. The biggest buyout was Blackstone picking 70% stake in apparel exporter Gokaldas Exports, a major player in ready made garment industry for $165m Early stage deals contributed substantially to the number of deals, but their contribution to the total value of deals remained low. The trend of venture capital is yet to develop, as most of the money is chasing big deals

Page 15

40 20

Late Stage

Source : Venture Intelligence

60

0

Buyout Deals in India Company

PE / VC FIRM

Industry

2005 & before

Deal Value ( USD mn )

VA Tech WABAG India

ICICI Ventures

Engg. & Construction

WNS

Warburg Pincus

ITES

Associated Cement Companies – Refractories Division

ICICI Ventures

Manufacturing

Punjab Tractors

Actis

Auto

N/A

Infomedia

ICICI Ventures

Media

N/A

Thomas Cook India

Dubai Investment Group

Travel

127

Sify

Infinity Capital

IT&ITES

2006

23 N/A 60

63 ( USD mn )

Flextronics Software Systems

KKR

IT Services

Nilgiri Dairy Farm

Actis

Supermarkets

65

GPI Textiles

Avenue Capital

Textiles

44

OCM India

WL Ross

Textiles

37

Oriental Containers

Navis Capital

Packaging

37

Patel Roadways

Reliance Capital

Surface Transport

33

Nirula’s

Navis Capital

Fast Foods

20

Source : Venture Intelligence

Page 16

765

Buyout Deals in India (Cont’d.) Company

PE / VC FIRM

Industry

Deal Value ( USD mn )

2007 Intelenet Global Services

Blackstone

ITES

200

Gokaldas Exports

Blackstone

Textile & Garments

165

Sharekhan

Citigroup

Financial Services

Aster Infrastructure

New Silk Route

Telecom Infrastructure

Apollo Hospitals Enterprise Ltd.Western Hospital Corp.

One Equity Partners LLC.

Medical

JRG Securities Ltd.

Baring Private Equity Partners India Pvt. Ltd.

Financial services

41

Phoenix Lamps

Actis

Auto Components

24

Tebma Shipyard

ICICI Ventures

Shipyard

23

Airworks India

Global Technology Investments

Aircraft Maintenance

24

Source : Venture Intelligence, AVCJ

Page 17

118.2 57 81.4

Buyout Deals – Trends 1,135

USD million

1200

14 Deals

900

14 Deals

600 300 0

977

375 9 Deals 6 Deals

2005

2006

2007

Amount of Buyout deals

In the year 2007, nine buyout deals have accounted for an amount of USD 977 million The share of buy outs in number of deals and in terms of value has remained low as compared to 2006 However, there were 3 buyouts that involved transactions worth over $100 Mn in 2007 compared to just one mega buyout in last year Blackstone was involved in 2 mega buyouts while Citi’s CVC unit made 1 buyout deal of retail broking arm of Sharekhan

Source : Venture Intelligence, AVCJ

Page 18

No. of Deals – USD 25 & USD 50 million plus investments No. of Deals with Investments Above $ 25 Mn PE Firm

2006

2007

No. Of Deals with Investments Above $50 Mn 2006

2007

3i

4

4

-

4

Avenue Capital Group

-

3

-

2

Baring Private Equity

-

2

-

Blackstone

-

8

-

6

ChrysCapital

-

2

2

1

Citigroup

-

15

-

9

General Atlantic

2

3

-

3

ICICI Ventures

3

7

2

2

IL&FS

-

7

-

3

JP Morgan

-

2

2

2

Morgan Stanley

2

3

2

2

SCB PE

2

2

-

1

Spinnaker

2

1

-

Temasek

-

5

-

3

Warburg

4

3

-

2

Source : AVCJ

Page 19

-

-

No. of Deals – USD 100 million plus investments No. of Deals with Investments Above $100 Mn PE Firm

2006

2007

Apax Partners

-

1

Avenue Capital Group

-

2

Blackstone

-

5

Carlyle

-

1

Citigroup

-

5

Farallon

1

Goldman Sachs

-

JP Morgan

1

-

KKR

1

-

Lehman

-

2

Morgan Stanley

-

2

Providence Partners

1

Temasek

1

Source : AVCJ

Page 20

-

4

-

2

2006 – Some USD 75 million plus investments Company

PE / VC FIRM

Industry

Deal Value ( USD million )

Idea Cellular

Providence Equity, Citigroup, ChrysCapital, NSS Ventures, Sequoia Capital, Spinnaker, Macquarie Bank, 2i Capital

Mobile Services

Flextronics Software Systems

KKR, Sequoia

IT Services

765 (for 85%)

Tata Teleservices

Temasek

Telecom Services

360 (for 9.9%)

L&T-Infrastructure Development Projects

JP Morgan Chase, IDFC PE-led consortium

Infrastructure

Indiabulls Financial Services

Farallon Capital Management

Financial Services

143

Quatrro BPO Solutions

Olympus Capital

BPO

100

Indiabulls Infrastructure

Karrick , Farallon Capital

Infrastructure Finance

Centurion Bank

Bank Muscat , ICICI Ventures

Banking

91

Amtek India

New Vernon , DE Shaw , IREO , Oasis Capital, Ritchie Capital , Kingdon Capital , Minivet Capital

Auto Components

82

UTI Bank

ChrysCapital

Banking

80

Nilgiri Dairy Farm

Actis

Supermarkets

Source : Venture Intelligence, AVCJ

Page 21

966 (for 34.5 %)

124 (for 21.6%)

99.3 (for 13.3%)

65.2 (for 51%)

2007 – Some USD 100 million plus investments Company

PE / VC FIRM

Industry

Deal Value ( USD million )

Bharti Airtel Ltd.

Temasek Holdings Advisors India Pvt. Ltd.

Telecommunications

2,013 (5% stake)

Bharti Infratel Ltd.

Temasek Holdings Advisor, CVC International India, Goldman Sachs Asia Ltd.

Telecommunications

1.000 (10% stake)

Jaypee Infratech

ICICI Venture Funds Management Company Ltd.

Construction

Housing Development Finance Corporation (HDFC)

Carlyle Group and Citigroup

Banking and Financial Services

ICICI Bank Ltd.

Dubai International Capital

Financial services

598 (2.9%)

National Stock Exchange (NSE)

General Atlantic Partners, SAIF Partners, Goldman Sachs, Morgan Stanley, Citigroup, Actis

Financial Services

525 (21%)

SKIL Infrastructure

Avenue Capital

Infrastructure

Reliance Telecom Infrastructure Ltd.

DA Capital; Fortress Capital; Galleon Partners; GLG Partners LP; HSBC Principal Investments; New Silk Route Advisors Ltd.; Soros Fund Management LLC

Telecommunications

Ushodaya Enterprises Ltd.

Blackstone Advisors India Pvt. Ltd.

Media

IDFC

Khazanah Nasional

Financial Services

Source : Venture Intelligence, AVCJ

Page 22

815 760 (7.1% stake)

500 (26% stake)

346 (5% stake)

275 (26% stake) 188

Large PE Exits – 2006 Company

PE / VC FIRM

Acquirer

Industry Healthcare & Lifesciences

Deal Value (USD million)

Matrix laboratories

Temasek Holdings, Newbridge Capital, Spandana Foundation

Mylan Laboratories

Mphasis

Baring PE

EDS

IT & ITES

380 ( for 52% )

Office Tiger

Francisco Partners

RR Donnelley

IT & ITES

250

Celetronix Intrenational

Westbridge, Baring PE , NEA, Golden Gate Capital, Charterhouse Group Intnl, Alta Partners

Jabil Circuit

IT & ITES

185

Progeon

Citigroup

Infosys Technologies

IT & ITES

115

736 ( for 71.5 % )

These big ticket deals clearly indicate a trend in the deal valuations in India… Source : Venture Intelligence, AVCJ

Page 23

Large PE Exits – 2007 Company

PE / VC FIRM

Acquirer

Industry

Deal Value (USD million)

Sintex Industries Ltd.

Warburg Pincus India Pvt. Ltd.

Undisclosed Investor(s) (India)

Manufacturing Heavy

256.4 (for 25%)

Punjab Tractors Ltd.

Actis Capital LLP.

Mahindra & Mahindra Ltd.

Transportation/ Distribution

215 ( for 43.5 % )

ACE Refractories Ltd

ICICI Venture Funds Management Company Ltd. (India)

Calderys (France)

Manufacturing Heavy

136 (for 99%)

Deccan Aviation Ltd.

Deccan Aviation Ltd. (India); ICICI Venture Funds Management Company Ltd. (India)

Kingfisher Radio Ltd. Transportation/ (India); United Distribution Breweries Group (UB Group) (India)

MTR Foods Ltd.

JP Morgan Partners Advisers Pte Ltd., MTR Foods Ltd., Aquarius Investment Advisors (India) Pvt. Ltd.

Orkla ASA

Firstsource Solutions Ltd.

ICICI Venture Funds Management Company Ltd.

Metavante Corporation, Galleon Partners

Godrej Beverages and Foods IL&FS Investment Managers Ltd. Ltd. YES Bank Ltd.

ChrysCapital Management Co., Citigroup Venture Capital International

104.6 (for 20%)

Consumer products/services Services - NonFinancial

100

73 (for 20%)

The Hershey Company

Consumer products/services

53.9 (for 51%)

Khazanah Nasional Bhd.

Financial services

48.5 (for 5%)

These big ticket deals clearly indicate a trend in the deal valuations in India… Source : Venture Intelligence, AVCJ

Page 24

PE Exits – Trends

1

2 PE funds obtained exit in 37 companies during 2006 including 19 IPO’s In comparison, year 2005 witnessed 41 liquidity events including 17 via IPO’s PE and VC firms obtained exit routes in 55 companies 2007

Source : Venture Intelligence

Page 25

3 PE backed companies raised about USD 1.2 billion via IPO’s in 2007

Total value of M&A transactions providing exits to PE investors during 2007 was approx USD 1.7 billion

India–Europe M&A Activity

Scenario of M&A activity between India and Europe Total number of M&A deals (inbound and outbound) have grown by 88% during 2005-2007

188

Total value of M&A deals has grown nearly six times during 2005-2007

30

In the period 2005-2008 (till 28 April) there have been 247 outbound deals for the value of USD 27.8 billion, lead by some big deals like the USD 12.7 billion TataCorus deal

The number of inbound deals became nearly double during 2005-2007, and their value increased by nearly seven times, indicating increasing attractiveness of Indian companies However Indian companies are very keen on pursuing cross-border deals also. The outbound deal activity grew by 80% in terms of number of deals and by nearly six times in value. According to a report, companies in India see international M&A as one of the means of progressing up the value chain through the acquisition of brands and distribution channels in North America and Europe

30

*2

160 140

131 19.1 *

20

120

1

100

100 15

80 59

10

5

2.3

20 0

0 2005

2006 value

*1-value

60 40

5.2

*2-value

Page 27

180

25

USD billion

Number of inbound deals during 2005 –2008 have been 231 for the value of USD 30.3 billion – lead by another big deal —acquisition of Indian telecom major Hutch by Vodafone

200

35

includes Tata-Corus deal includes Hutch-Vodafone deal

2007 deals

2008

India–Europe Outbound M&A scenario Outbound M&A deals 18

100 95

16.1

16

80 70

12 66 10

60

54

8.3

50

8

40

6 4

32

30 20

2.7

2

0.6

0

10 0

2005

2006 Value

2007 No.of deals

Source: Bloomberg, accessed 28 April 2008 Note: 1) YTD figures are till 23 April 2) All pending and completed deals

Page 28

90

14

USD billion

Total number and value of outbound M&A deals from 2005 to 2008 (till 28 April) from India to Europe were 247. and USD 27.8 billion respectively Value of deals increased by nearly three times during 2005-2007 Prominent deals during the period were Tata’s USD 12.7 billion acquisition of steel major Corus and United Breweries’ acquisition of Whyte & Mackay for USD 1.1 billion in 2007 Majority of deals (88%) were in the Western Europe region Deals in Eastern Europe were primarily in Czech Republic and Russia

2008

Top 5 Outbound deals from 2005-2008 (YTD) Year

Target Name

Acquirer Name

Target Country

Sector

Amount (USD million)

2007

Corus Group

Tata Steel

Britain

Steel

12,780

2007

Whyte & Mackay

United Spirits

Britain

Wine/Beverages

1,176

2007

Finsider international

Vedanta Resources

Britain

Metals

981

2007

REpower systems

Multiple Acquirers

Germany

Power

975

2007

Sinvest ASA

Aban Offshore

Norway

Power

645

Page 29

India–Europe Inbound M&A scenario 25

120 111

20

73

15

60 10

52 40 32

5 2.7

3.1

2.2

0

20

0 2005

2006 Value of deals

Source: Bloomberg, accessed 28 April 2008 Note: 1) YTD figures are till 23 April 2) All pending and completed deals

Page 30

100

22.1

80 USD billion

Total M&A deals from 2005 to 2008 (28 April) with Indian companies as targets and European companies as acquirers were 268. Value of deals was USD 30.3 billion Value of deals increased by nearly 11 times from 2005 to 2007, but this was particularly lead by the acquisition of Hutchisson Essar by Vodafone for USD 18.5 billion Major deals apart from the Hutch Vodafone deal were the Holcim-Ambuja Cement deal Nearly all deals (97%) were from the Western Europe region Deals in Eastern Europe were primarily from Cyprus, Russia , Poland

2007

2008

No. of deals

Top 5 Inbound deals from 2005-2008 (YTD)

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Year

Target Name

Acquirer Name

Target Country

Sector

Amount (USD million)

2007

Hutchison Essar

Vodafone Group

Britain

Telecom

18,567

2005

Bharti Airtel

Vodafone Group

Britain

Telecom

1,464

2006

Ambuja Cements

Holcim Ltd.

Switzerland

Cement

563

2008

Sweta Estates

Ashmore Group

Britain

Power

550

2007

My Home Industries

CRH Plc

Ireland

Cement

451

India –Italy M&A scenario Inbound In the period 2005-2008 (till 28 April) there were nine inbound deals. Six of the deals were in 2007 itself. The deals were in sectors including Engineering and Construction, Manufacturing, Beverages

Outbound In the period 2005-2008 (till 28 April) there were 12 outbound deals The deals were in sectors including Apparels and Textiles, Pharmaceuticals, and Auto Equipment Italy has a booming fashion industry and India’s fashion industry is also witnessing growth. Indian players want to integrate with the global fashion industry and thus there are significant number of deals in the Apparel/Textile sector

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Top 5 Inbound deals from Italy during 20052008(till28 April) Year

Target Name

Acquirer Name

Sector

Amount (USD million)

2007

Tecnimont ICB

Maire Tecnimont Spa

Engineering & Construction

103.6

2007

Fresh & Honest Café

Lavazza

Beverages

51.2

2007

Barista Coffee

Lavazza

Beverages

49.7

2006

Carraro India

Carraro Spa

Auto Parts &Equipment

25.6

2007

United Shippers

Coeclerici Logistics Spa

Shipping & Logistics

19.7

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Top 5 Outbound deals from Italy during 20052008(till28 April) Year

Target Name

Acquirer Name

Sector

Amount (USD million)

2007

Mariella Burani Fashion Group

Gitanjali Gems

Retail

N.A

2008

Metalcastello Spa

ICICI Ventures and Mahindra and Mahindra

Auto Equipment

N.A

2007

Top Glass Spa

Kemrock Industries & Export

Commercial Services

N.A

2006

G R Grafica Ricerca Design s

Mahindra & Mahindra

Auto Manufacturers

N.A

2007

Cemp Spa

Multiple Acquirers

Auto Parts &Equipment

40

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Thank you